EIBTM 2014 Trends Watch Report

The 2014 EIBTM Trends Watch Report was presented by Rob Davidson (Senior Lecturer in Events Managementat University of Greenwich and Managing Director at MICE Knowledge) and it showed that companies and organisations operating in the global Meetings and Events industry are more positive about future business opportunities.

If you didn’t have the chance to attend EIBTM 2014, here it is a summary:

THE GLOBAL ECONOMIC SITUATION IN 2014

In 2013, the overall business travel spending reached to US $1.1 trillion and it is set to increase by 6.9% and 8.6% in 2014 and 2015.

In 2014 it is expected a global economic growth but mainly in the emerging economies. In fact, the Eurozone is still in a period of stagnation and there is a risk of deflation that could undermine the investment decisions of many event planners and venue managers. In Japan, the third biggest economy, the government has recently announced to be entered into recession. The situation is different in the US where the ECB during the last 6 years has stimulated the US economy and made stronger the US$. On the other hand, slowing rates of growth were measured in the BRIC economies, with a major trade deal between China and Australia. The Russian economy is slowing as a consequence of the conflict in Ukraine which resulted in stronger trade links with China and the Asian markets.ASSOCIATION CONFERENCES

According to Marketing Challenges International’s survey report , Trends in International Association Meetings from North America:

91% of planners expect their budgets to increase or remain the same for their upcoming events

A significant percentage of association planners expressed willingness to repeat locations for their largest international events

Less concern for destination’s reputation, so emerging destinations have a role to play

During the research and planning stages, convention bureau and tourists boards are the crucial resource to planners

Budget changes from previous year (Decreased 12%, Increased 42%, Remained the same 46%)

Expected budget changes for the next international event (Decreased 9%, Increased 37%, remained the same 54%)

There is clear evidence of growth in the number of association meetings being held worldwide, as the total number of meetings in the UIA database for 2013 reached 408,798, a significance rise from the 392,588 meetings on the database for the previous year.

Use of event technology (e.g. app for meetings and events) is gaining popularity and 64% of organisers in a survey expressed that they are considering to create a mobile app for their events in 2014. The number continues to see high growth year on year.

INCENTIVE TRAVEL

A higher percentage of organisers see the use of Return on Objective /Return on Investment for the Incentive travel events. Also, a higher section believes that business meetings should form part of motivational events

Two key surveys this year point to a resurgence in the use of incentive travel and upbeat expectations for the future of this sector.

SITE International Foundation’s most recent index Annual Survey demonstrated that optimism about the overall use of motivational travel experiences is at four year high

The Incentive Research Foundation Fall Pulse Survey, conducted in August this year: 2/3 of the respondents were positive or strongly positive about the impact of the economy on IT

Even though the length of incentive travel trips is generally not increasing, the number of programs decreasing in size and duration has steadily dropped.

The involvement of Procurement professionals in the buying of incentive travel: 52% did not expect this to change, 32% expected it to increase moderately, 12% expected it to increase significantly

More emphasis on ROI and work elements in IT

Destination trends for the future year (46% no change, 15% from domestic to international, 12% will pick locations closer to “home”, 10% from international to domestic, 5% from land to cruise, 5% from cruise to land)

MICE IN EUROPE

Success in meetings and events follows economic performance: 92% of the Top 50 agencies in the UK are forecasting growth. Delegate numbers have seen an increase and people are starting to spend again.

Lead-times for large meetings getting slightly longer: from 2.4 to 2.6 years

Venue rates in the US have returned close to the previous record levels of 2007-2008. It is now a seller’s market in almost all destinations especially in high demand cities such as New York, Chicago, Los Angeles, Miami and San Francisco.

42% of respondents reported that they would be holding meetings outside the US

MICE IN ASIA

A growing source of demand – and competition for established destinations

In China, “price” has become much more important as a factor taken into account by buyers when choosing destinations and venues

The Chinese government’s austerity drive, has had an impact on the market for the government meetings

But there is stronger potential in the corporate and association meetings segments

With China’s rapidly aging population, there are more medical and academic congresses

Plans for new convention bureaus, e.g. Hangzhou

New infrastructure for the conference industry, e.g. the MICE Cluster in Seoul

MICE IN MIDDLE EAST AND AFRICA

A robust intra-regional market for ME meetings, with Dubai emerging as the GCC country most widely chosen by meeting planners

ME planners are also using destinations well beyond their own region. Just under 70% of respondents reported that they had used European destinations for their events in the past 2 years

France, Spain, Austria, Italy and Turkey

Expansion of meeting facilities continued this year in the middle East / Africa region.

628 new hotels under contract, totalling 147,454 rooms

Nigeria’s first dedicated international convention centre, the Calabar international Convention Centre

MICE IN KEY CORPORATE MARKETS – ICT

Top markets for revenue growth: US, China and the UK

Data and Analytics is leading source of growth

The US, India and China are expected to be the leading markets for the job growth

Also high expectations for Canada, the UK and Germany

American capital flowing into European ICT sector

MICE IN KEY CORPORATE MARKETS – AUTOMOTIVE

The US and China account for over 55% of global car sales

China has been the world’s largest car market since 2010

Western car manufacturers (via joint ventures with Chinese state-owned maker) have a 60% share of the market

Gianfranco is Bizvento’s Marketing Director. He defines the company’s corporate and product messaging and leads the development of digital marketing activities. He gets inspiration from playing with his kids and cooking delicious Italian food for dinners with his friends. Visit www.bizvento.com or follow us on Twitter to learn more.